School Preferred Lender Lists

    In response to several borrower inquiries, the Utah Higher Education Assistance Authority (UHEAA) would like to clarify the regulatory requirements regarding the use of school preferred lender lists.

    Schools may make available to borrowers a preferred lender list which includes lenders who have commonly made student loans at that school.  However, schools may not deny a borrower access to a Federal Family Education Loan (FFEL) because of a borrower's selection of a particular lender which does not appear on such a list.  Borrowers must be allowed to receive a FFEL loan through the eligible lender of their choice.

    The federal regulations in 34 CFR 682.603(e) specify that "A school may refuse to certify a Stafford or PLUS loan application ... provided ... the school does not engage in a pattern or practice that results in a denial of a borrower's access to FFEL loans because of the borrower's ... selection of a particular lender or guaranty agency."

    Questions concerning school preferred lender lists can be directed to the UHEAA Policy and Training Department at (801) 321-7166 or by e-mail to cjudd@utahsbr.edu.